VA awards $6M for Zeiss Forum licenses and support, a sole-source contract with potential for cost savings

Contract Overview

Contract Amount: $6,008,061 ($6.0M)

Contractor: Proaim Americas, LLC.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-02

End Date: 2026-06-30

Contract Duration: 1,397 days

Daily Burn Rate: $4.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BRAND NAME ZEISS FORUM LICENSES, MAINTENANCE AND SUPPORT SERVICES

Place of Performance

Location: ELLISVILLE, SAINT LOUIS County, MISSOURI, 63011

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.0 million to PROAIM AMERICAS, LLC. for work described as: BRAND NAME ZEISS FORUM LICENSES, MAINTENANCE AND SUPPORT SERVICES Key points: 1. The contract's sole-source nature raises questions about potential overpayment and lack of competitive pricing. 2. Limited competition suggests a higher risk of inflated costs compared to open market procurement. 3. The firm-fixed-price structure offers some cost certainty but may not capture potential volume discounts. 4. Performance duration of nearly four years necessitates careful monitoring for continued value. 5. The IT services sector is characterized by rapid innovation, making long-term sole-source contracts potentially less cost-effective. 6. Lack of small business set-aside indicates no specific focus on supporting smaller vendors in this procurement.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging without competitive bids. The $6 million price tag over nearly four years for software licenses and support needs careful scrutiny. While firm-fixed-price contracts provide budget predictability, they can sometimes obscure opportunities for better pricing through negotiation or competitive bidding. Without comparable contracts or market data for similar Zeiss Forum deployments, assessing the true value-for-money is difficult. The VA should ensure robust internal cost analysis was performed prior to award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, PROAIM AMERICAS, LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and can lead to higher costs for the government. The absence of competition means the VA did not benefit from the potential cost reductions that arise from a bidding war.

Taxpayer Impact: Taxpayers may have paid a premium for these software licenses and support services due to the lack of competition. Without a competitive process, there is less assurance that the government secured the best possible price.

Public Impact

Veterans Affairs medical staff and administrators will benefit from access to Zeiss Forum software and support. The software likely supports critical functions within the VA, potentially related to medical imaging, data management, or clinical workflows. Services are delivered nationwide, supporting the VA's mission to provide healthcare to veterans across the country. The contract supports IT services jobs within PROAIM AMERICAS, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Lack of transparency in the justification for sole-source award.
Long contract duration (nearly 4 years) without competitive re-evaluation.
Potential for vendor lock-in with specialized software.
No indication of performance metrics or service level agreements in the provided data.

Positive Signals

Firm-fixed-price contract provides budget certainty for the VA.
Contract awarded to a single vendor, potentially simplifying management.
Supports the VA's IT infrastructure and mission delivery.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on software licensing, maintenance, and support. The IT services market is vast and highly competitive, with numerous vendors offering solutions for data management, workflow optimization, and specialized applications. However, for specific proprietary software like Zeiss Forum, the market for support and licensing can become concentrated. The VA's spending on such specialized software is typical for large healthcare organizations aiming to leverage advanced technology for operational efficiency and patient care.

Small Business Impact

This contract does not appear to include a small business set-aside. The award to PROAIM AMERICAS, LLC, suggests it is either a large business or the set-aside status was not applicable or specified. There is no information provided regarding subcontracting plans for small businesses. This means opportunities for small businesses to participate in fulfilling this contract are not explicitly mandated by the contract terms.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. The firm-fixed-price nature provides some cost control, but the sole-source award necessitates diligent monitoring of performance and adherence to the contract terms. Transparency is limited due to the non-competitive nature of the award. Inspector General involvement would likely be triggered by specific allegations of fraud, waste, or abuse, rather than routine oversight.

Related Government Programs

Veterans Affairs IT Modernization Initiatives
Healthcare IT Software Procurement
Software Licensing and Maintenance Contracts
IT Support Services for Federal Agencies

Risk Flags

Sole-source award without clear justification.
Potential for overpayment due to lack of competition.
Long-term contract duration without competitive re-evaluation.
Lack of publicly available performance metrics or SLAs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.0 million to PROAIM AMERICAS, LLC.. BRAND NAME ZEISS FORUM LICENSES, MAINTENANCE AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PROAIM AMERICAS, LLC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $6.0 million.

What is the period of performance?

Start: 2022-09-02. End: 2026-06-30.

What is the specific justification provided by the VA for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. However, the specific justification (e.g., unique capability, urgent need, lack of sources) is not detailed in the abbreviated data. Typically, federal agencies must document and justify sole-source procurements to ensure they are necessary and in the government's best interest. This justification is crucial for understanding why competition was bypassed and whether it was appropriate. Without this documentation, it's difficult to assess the validity of the sole-source decision and its potential impact on cost.

How does the per-unit cost of Zeiss Forum licenses and support compare to market rates or similar government contracts?

Benchmarking the per-unit cost is challenging with the provided data. The total award is $6,008,060.84 over approximately 1397 days (from Sept 2, 2022, to June 30, 2026). However, the number of licenses or users is not specified, making a direct per-unit cost calculation impossible. Furthermore, as this is a sole-source contract, there are no competing bids to establish a market-driven price. To assess value, the VA would need to conduct an internal price analysis, comparing the proposed costs against independent cost estimates or historical pricing for similar Zeiss software deployments, if available.

What is PROAIM AMERICAS, LLC's track record with the Department of Veterans Affairs and other federal agencies?

The provided data lists PROAIM AMERICAS, LLC as the contractor. A comprehensive assessment of their track record would require accessing broader federal procurement databases (like FPDS or SAM.gov) to review past performance, contract history, and any reported issues. Without this external data, we can only note that they were awarded this specific $6 million sole-source contract. Understanding their past performance, including on-time delivery, quality of service, and any past disputes or contract terminations, is critical for evaluating the risk associated with this current award.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The abbreviated data does not include details on specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. For software maintenance and support services, typical SLAs might include response times for technical issues, uptime guarantees for the software, and availability of support personnel. The absence of this information in the summary makes it difficult to objectively measure the contractor's performance and ensure the VA is receiving the expected level of service. Robust KPIs and SLAs are essential for accountability and ensuring the value of the $6 million investment.

What is the historical spending trend for Zeiss Forum licenses and support services at the VA?

The provided data only covers the current contract period from September 2, 2022, to June 30, 2026, totaling approximately $6 million. It does not provide historical spending data for Zeiss Forum licenses and support services at the VA prior to this contract. To understand spending trends, one would need to analyze procurement records for previous contracts related to this software, potentially identifying if this is a renewal, an expansion, or a new requirement. Analyzing past spending could reveal patterns of increasing costs, consistent usage, or shifts in technology adoption.

Are there any known risks or challenges associated with the implementation or ongoing use of Zeiss Forum software within the VA?

The provided data does not specify any known risks or challenges directly related to the implementation or use of Zeiss Forum software within the VA. However, general risks associated with sole-source software contracts include potential vendor lock-in, where switching to a different vendor becomes prohibitively expensive or complex. Additionally, reliance on a single vendor for critical software and support can pose a risk if that vendor experiences financial instability or discontinues the product line. The effectiveness and user satisfaction with the software itself would also be a factor, though not detailed here.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10B22R0018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Proaim Americas LLC.

Address: 16024 MANCHESTER RD STE 200, ELLISVILLE, MO, 63011

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,008,061

Exercised Options: $6,008,061

Current Obligation: $6,008,061

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline